Never trade against the direction of the macro timeframe. 2. The Setup Timeframe (The Pattern Builder)
Watch for a short-term trendline break or a reversal pattern (like a double bottom) on high volume.
A common, effective structure is checking the Long-Term, Intermediate-Term, and Short-Term charts to confirm a setup before entering a trade. Key Components of Shannon’s Strategy 1. Trend Alignment and Market Structure
To implement this strategy successfully, traders typically utilize three distinct timeframes categorized by their specific functions.
Published in 2008, Technical Analysis Using Multiple Timeframes Never trade against the direction of the macro timeframe
By downloading Brian Shannon's PDF guide, traders can gain a deeper understanding of technical analysis using multiple timeframes and improve their trading performance.
By analyzing multiple timeframes, traders can align themselves with the dominant market trend while executing trades with precision. Shannon breaks market structure down into four distinct stages:
By knowing the higher-level trend, you are less likely to panic-sell during a minor pullback on a shorter chart.
: Purchase physical or digital editions directly through reputable marketplaces like Amazon or through Brian Shannon’s official educational platform, Alphatrends. A common, effective structure is checking the Long-Term,
: Free bootleg copies often miss critical charts, annotations, or pages, rendering the technical lessons useless.
To illustrate how these timeframes interact, consider a standard long setup for a swing trader:
: Price stays above rising 20-day and 50-day moving averages. Trader Action : Buy pullbacks and breakout patterns. Stage 3: The Distribution Phase
Trading becomes high-probability when multiple timeframes align. If the daily chart is in a strong Stage 2 markup, you look at the 15-minute chart for pullbacks to support or moving averages to buy. This aligns short-term momentum with long-term capital flows. Why You Should Avoid "Free PDF" Search Terms showing that sellers lack conviction. 3.
Price pullbacks should occur on decreasing volume, showing that sellers lack conviction. 3. Anchored VWAP (Volume Weighted Average Price)
Our free PDF guide offers several extra quality features, including:
Never set a stop-loss based on a macro timeframe if you entered on a short-term execution timeframe, as this dramatically increases your capital risk per trade.
this methodology with other technical analysis approaches.